A firm's level of investment depends on the market interest rate:
a. only when the firm has to borrow funds to invest in new equipment.
b. only when the firm has to borrow funds to buy stocks and bonds.
c. only when the firm already has sufficient funds and could lend them
d. because the interest rate represents the opportunity cost of investing in capital.
e. because investments are always made with borrowed funds.
d
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When there is a technological advance in the pork industry, consumer surplus in that market will
a. increase. b. decrease. c. not change, since technology affects producers and not consumers. d. not change, since consumers' willingness to pay is unaffected by the technological advance.
The principal amount of a bond is the amount:
A. of interest the bondholder is entitled to when the bond matures. B. of interest agreed upon when the bond was originally issued. C. originally lent. D. paid to the bondholders on a regular basis.
Suppose Gigantic Health Cooperative doesn't hire Mandy Morrison solely because she is a graduate of a particular foreign medical school, which is not known for the high quality of its graduates. Yet, Mandy is actually more qualified than the average
graduate of American medical schools. This is an example of: A. monopsony exploitation. B. human-capital discrimination. C. statistical discrimination. D. irrational behavior.
Suppose the market for shoes consists of three consumers. The table below shows the quantity demanded at various prices for each consumer:Price PerPairPairs Demandedby PatPairs Demandedby LeighPairs Demandedby Chris$100010$75031$50173$302105At $100 per pair, market demand:
A. is less than the quantity supplied. B. is the same as Leigh's demand. C. intersects the y-axis. D. intersects the x-axis.